Linda McMahan Gunning was inundated with compliments on the
University of Texas handbag she used to carry to university events.
Though the bag, which she picked up at a local store, was roughly
made and not properly licensed with the college, it drew a lot of
attention from other women and fans.

As an attorney, McMahan Gunning soon realized that if she could
obtain the licensing rights for collegiate logos and design her own
line of high-end handbags emblazoned with school emblems, there
would be quite a demand for her products. She decided to cold-call
the University of Texas to pitch her unique concept.

"They said, 'If you can do all this, we think it's
a great idea. We'll take a chance with you,'" recalls
McMahan Gunning, 55. With those encouraging words in mind, she
enlisted the help of her sister-in-law and avid fashion lover, Sue
Craft McMahan, 36, to join her in the logo handbag venture.

Interestingly enough, obtaining licensing agreements wasn't
the biggest challenge during start-up; finding a manufacturer and
researching what women really want in a handbag proved to be the
major hurdles. They canvassed not only college-age women, but also
alumni and families of students.

When the pair designed four different types of bags- large
tote bag, a smaller baguette bag, a crescent-shaped handbag and a
bolder game-day bag- marked with the University of Texas
emblem, the favorable responses they received were
overwhelming.

Today, with sales into the mid-six figures, Bagalogos! bags can
be found at www.bagalogos.com and at high-end boutiques and
college bookstores. Schools on the company's roster include the
University of Alabama, Oklahoma State University campuses, Texas
A&M University campuses and Texas Tech University; the partners
plan to add seven more schools in 2004. They've also set their
sights on other big-name schools with high-profile and loyal
alumni. Talk about higher learning.

On a Shoestring

When Paul Sowinski got hooked on attending computer shows in
high school, his dream of becoming an entrepreneur arrived in the
form of toner cartridges. Self-help books like Brian Tracy's
Maximum Achievement: Strategies and Skills That Will Unlock Your
Hidden Powers to Succeed (Fireside) and a loan from his parents
sent the 18-year-old on his way.

Working out of his home, Sowinski bought two computers, phone
lines and inventory. His inkjet and laser toner cartridge company,
Top-Notch
Computer Supplies, was profitable from the start-and the teen
entrepreneur was suddenly flush with cash. "My friends always
had money because their parents gave it to them," says
Sowinski, who made $40,000 his first year in business, doubling it
the next year. "When I started making money, I was like
'Ohmigod.'"

Initially indulging personally and professionally on frivolous
items, Sowinski, now 23, has since reformed his spending habits.
"There was a lot of waste that I overlooked," he says.
"I feel like I matured a lot." Eliminating three cell
phones and changing his business phone carrier cut expenses, as did
breaking down the daily cost of each potential purchase. "Now
I look at everything as a potential profit or not," says
Sowinski, who estimates 2003 sales of $500,000.

With Sowinski's vision of a million-dollar company on track,
his new goal of $100 million is plausible given his passion for
business and lean operations. "I wanted to learn by
error," he says. "I've made all the errors you can
make. When [I] cut costs, that's money in my pocket. Every
dollar counts now."